Manulife closes C$3.2 billion long-term care reinsurance deal

• Manulife (NYSE:MFC) completed a reinsurance transaction covering a long-term care policy block with C$3.2 billion of reserves.
• Munich American Reassurance Company will assume an 80% quota share of the specified biometric risk.
• The transaction is effective July 1, 2026, with reserve values measured under IFRS 17 as of June 30, 2026.

Manulife (NYSE:MFC) completed its previously announced long-term care reinsurance transaction with Munich American Reassurance Company, covering a policy block with C$3.2 billion of reserves.

The agreement transfers an 80% quota share of the specified long-term care biometric risk to Munich American Reassurance Company, which operates as Munich Re Life US and is part of Munich Re Group.

The transaction became effective on July 1, 2026, following the close of the previously announced arrangement.

The C$3.2 billion reserve figure is based on Manulife’s June 30, 2026 position under IFRS 17 and includes estimated future cash flows, a risk adjustment and contractual service margin.

The quota-share structure means Munich Re Life US assumes 80% of the covered risk under the terms of the reinsurance agreement.

The completed transaction reduces Manulife’s direct exposure to the specified long-term care biometric risk while leaving the underlying insurance policies in place.